Savers Can Earn 4% in 3 Account Types as Traditional Savings Pay Just 0.38%
Updated
Updated · CBS New York · Jun 5
Savers Can Earn 4% in 3 Account Types as Traditional Savings Pay Just 0.38%
3 articles · Updated · CBS New York · Jun 5
Summary
Three account types—CDs, high-yield savings accounts and money market accounts—are offering roughly 4% or more in June, giving savers a chance to beat inflation by more than 1 percentage point.
Traditional savings accounts average just 0.38%, making idle cash a losing proposition in a still-high-rate environment even as inflation and other conditions soften.
CDs lock in a fixed rate through maturity but charge early-withdrawal penalties, while high-yield savings and money market accounts keep funds more accessible and may hold steady if rate cuts stay off the table.
The latest guidance builds on earlier comparisons showing a $70,000 deposit could earn about $2,877 in a 1-year CD at 4.11% or $2,870 in a high-yield account at 4.10%.